The acquisition is still going through, but Cresco needs more time to make the arrangements
One of the most relevant mergers of 2023 was expected to take place at the end of March. However, the deal between multi-state marijuana operators (MSOs) Columbia Care and Cresco Labs appears to have received an extension yet again. Closing of the transaction is expected to be completed by June 30, an extra two months that has again raised many questions about how the process is being handled.
This is the second time that both MSOs have reached a “mutual agreement” to postpone an acquisition that was announced long ago. Many experts believe it is clear that there are a number of complexities involved in closing such a major deal, especially at a time when other acquisitions have been canceled amid widespread layoffs and limited funding in the marijuana industry.
The press release explains that the extension will give both firms time to fine-tune the details of the asset divestiture agreements needed to close the merger while obtaining the necessary regulatory approvals. The $2-billion move was announced exactly one year ago and is contingent on both companies selling a number of assets. Cresco would take over all of Columbia Care’s operations.
The deal was originally expected to be completed before 2022 ended, but that was not the case. March was to be the next date, raising doubts about whether the merger would actually close. This latest delay will definitely fuel additional speculation. It is important to note that the Maryland, Florida, and Ohio assets still need to be sold for the merger to be finalized.